European property investment firm Avignon Capital has purchased two hotels in the German cities of Berlin and Frankfurt for a total €48.5 mln in an off-market transaction.
The deal, Avignon's first in the hotel sector, was completed off-market. Both properties are let to Meininger and are strategically located next to major transportation hubs.
'The booming German hotel industry presented us with an opportunity to diversify our portfolio whilst sticking to our philosophy of investing in attractive locations with strong growth fundamentals,' commented Eric Mounier, CEO at Avignon Capital.
The 296-room Berlin Meininger comprises 7,487 m2 and stands on Washingtonplatz, near Berlin’s main railway station in the Europacity district. The 4,720 m2 Frankfurt Meininger contains 168 rooms and is located in Frankfurt’s Gateway Gardens.
The deal follows the sale of Avignon Capital’s Copenhagen prime retail portfolio for €119 mln in January 2017, which provided investors with a 135% return on equity, as well as the sale of an office building in Oslo for €61 mln, producing an 87% return on equity.
